New York, February 10, 2026, 11:46 (ET) — Regular session
- Shares slipped roughly 7.5% in late morning action, trailing other storage names.
- Western Digital has moved to redeem its 2026 senior notes, a detail revealed in a new SEC filing.
- U.S. data and shifting rate expectations are shaking up tech stocks, putting the focus back on AI-connected hardware trades for investors.
Western Digital Corp shares slid roughly 7.5% to $264.50 late Tuesday morning, erasing a sizable portion of last week’s rally as storage stocks lost ground. The Nasdaq-listed name dropped $21.49 from Monday’s close, touching an intraday low of $260.99.
Western Digital’s slide is notable—this is the stock plenty of traders use as a proxy for the straightforward AI data center growth play. If that thesis hits turbulence, shares don’t hesitate to swing.
Late Monday, a regulatory filing revealed the San Jose, California-based company placed funds with its trustee on Feb. 5 to redeem every remaining 4.750% senior note set to mature in 2026. The company also confirmed in the filing that the related 2018 indenture has now been fully satisfied and discharged.
U.S.-listed companies file an 8-K to alert investors when something significant happens. With a debt redemption, the company pays off what it owes ahead of schedule. That move cuts down on interest, though it uses up some cash.
No lift from the broader market. December’s U.S. retail sales stalled—unexpectedly flat—and UBS cut its rating on the S&P 500 information technology sector to “neutral.” Nvidia’s results, due later this month, have investors hanging back as well. “It’s really the retail sales data … that’s driving some of the weakness,” said Charlie Ripley, vice president of portfolio management at Allianz Investment Management. Reuters
Western Digital wasn’t the only name under pressure. Seagate Technology slipped roughly 5.7%, while Micron Technology dropped close to 2.9% as of late morning.
Tuesday’s slide aside, the stock remains a top performer for the year. Western Digital has climbed roughly 57% year to date, according to Nasdaq data, though on Tuesday it paced losses in the Nasdaq 100.
Last week, the board gave the green light to boost the share buyback program by another $4.0 billion. CEO Irving Tan described the decision as a show of “confidence in WD’s future.” As of Feb. 2, the company reported it still had roughly $484 million left from the previous authorization. Business Wire
The buyback came on the heels of a robust quarterly report in late January. Western Digital put out guidance for fiscal Q3, calling for adjusted revenue of $3.2 billion, give or take $100 million—topping analyst expectations. Adjusted earnings? $2.30 a share, plus or minus 15 cents. They pointed to AI server buildouts as the key driver.
But this setup has its risks. Storage and memory prices are notoriously volatile, and if data-center demand tapers off or supply ramps up sooner than anticipated, margins could get pinched—sharp cycles are just part of the game. Reuters noted that a worldwide memory chip shortage has driven prices higher and stretched out lead times, but those dynamics can flip once supply aligns with demand.
Investors are eyeing April 29 for the company’s next earnings release, as listed on Public.com’s earnings calendar.
